The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-12-16
THE CHARGE AGAINST IVES
The Present Suit Was Not Brought by
Authority of c., Fl. & D. Directors.
The Defense Concede Number of Points, but
Deny Criminal incentives Tells How the
Purchase of the Vandalia Was Made.

charge brough against Henry S. Ives by President
Julius Dexter, of the Cincinnati Hamilton s.
Dayton Railroad Company had its first examin-
alton at the Tombs court to-day. Mr.. Dexter
the first witness called. Mr.. Johnson.
gel for Ives, conceded that contract made
by Ives as trustee for the Cincinnati Hamilton
& Dayton with President Keen of the Terre
Houte & Indianapolis road, for the purchase OF
the latter railway for $3.50 500 and that the
purchase made by Ives, trustee. because
1t was well known that the Cincinnati, Hamil-
ton e Dayton, corporation, had no right to
60 into such transaction. The existence of
the drafts alleged to have been drawn in pay
ulent on the purchase was also conceded. with
the fact that draft No. 4, for 800. 900, was in
dorsec and deposited to the credit of Henry S.
Ives & Co.. in New York, these being things
.har the drafts showed for themselves.
ave will concede everything, in this case, that
know be fair" said Mr.. johnson. I'VE
do not wish to try the case on technicalities."
The prosecution then produced cash book d.
of Henry S. Ives & Co, from which Mr. Dexter
read an entry of June 6, Mr. johnson first OBJ
jecting. and then allowing that the attention of
this court might be called the entry. The
book said: ''Henry S. Ives, trustee. 500, 000."
WELL said Mr.. johnson, 1--WE concede that
that amount placed to the credit of Henry
S. Ives. as trustee for the Cincinnati, Hamilton
& Dayton"
"The book does not say that" said Mr. Dex-
ter. ohjscting to the last few words. and it was
agreed to stop at trustee"
The defense then made concession that the
draft in question never was passed 20 the gen.
srai account of the Cincinnati. Hamilton & Day
son with Henry s. Ives & Co.. but it was in
,isted that due credit was made on this other
bccouut with Henry S. Ives, trustee.
Under DISCRIMINATION, Mr.. Dexter ad-
nitted that he had been made a stakeholder in
che road with the consent of Mr.. Ives, and that
st the time OF the Vaudalia transaction Henry
& Ives 81 Co. owned large majority of the
Cincinnati, Hamilton & Dayton stock. At that
lime the witness was not~even a stakeholder.
lie was made president last August. He did
not know who discovered the alleged 800, 600
robbery
The remainder Of the cross-examination was
devoted to a series of questions intended to
show personal animus against Ives on the part
of Dexter
The next witness was Handy 5. Ogden, who
testified to having power of attorney and keep
ing books for Ives & Co. By him and the books
the prosecution stated its purpose TO show that
By the last day of May the firm insolvent,
and that it would not have been kept up after
June 6 without the of the 800 900 alleged
10 have been appropriated by Ives. Mr.. iees's
counsel considered it peculiar way to prove
ap m cash basnee that was on sss
shan It's liabilities. Nevertheless, they
let it te shown by Mr. Ogden that on Sat
4,
Co.'S balance was only $1,000. while their liza
bilIties were much greater. Here Saturday
and Sunday question came in, for on that Satur-
day Mr. Ives came hack from the Vandalia ne
gotiations. Then came the Sunday. and
Monday the books showed 5000 600 check paid
TO Robert Garrett. 1t was claimed on this basis,
by the prosecution that the $780, 600 alleged to
have been stolen had Eelped Ives d Co. out of
3heir strait.
Mr.. Adams, OF the defense had already made
motion to dismiss the complaint on the ground
OF insufficient evidence of a criminal intent, but
70 was finally decided to put MIR. Ives the
htard and let him state voun tarily whatever he
chose. Mr.. Ives told very simply the story of
the Vandalia transaction. in the carrying on of
which five of the nine directors of the Cncin-
natl, Hamilton & Dayton had been engaged at
Terre Haute. Mr.. Ramsey, the general
Jel, was there. overlooking the operations, and
Assistant Treasurer Short carried the drafts for
the purchase money. The contract called for
the payment of $500. 500. but extra 100000
was carried for any contingency that might
arise. They dealt with. Mr. Mekeen,
paid the amount called for, and the overplus of
BOO, 900 Mr.. Ives carried with him back to
Brooklyn, where he arrived Saturday night.
The next day MIR. Staynor, then president of the
Cincinnati, Hamilton q Dayton, called to see
him. The witness told the story of the sransac-
tion, reported the overplus, and handed the
check to Mr.. Staynor. That the last the
witness of it. did he know how
t had been deposited until his attention
was called TO it. 1t was the COM
spoke TO him of the matter. Mr.. Ives also
titled that Henry S. Ives & Co. bankers for
the Cincinnati Hamilton & Dayton road. and
that the largest part of the companys money
was deposited with them. When asked if his
firm insolvent the last day of May the
witness said it was not insolyent. even when the
assignment was made Aug. IL. and he
created sensation by the statement that the
assignment had been made partly the advice
of his good friend Mr.. Dexter. who had shaken
hands with him after it done. AS to the
check, if his directions had been asked for he
would have had it deposited to the general
lount of the Cincinnati. Hamilton q Dayton.
Cashier recalled.
testimony that Mr.. Ives had nothing to do with
aepositing the 100000.
Mr.. Ives came back long enough to say that
ie did not see what he could have done with the
bheck different from what he did. and then
counselor johnson took up the motion to dis
miss the complaint. He declared there was no
evidence to show that there was either intent
10 defraud, or that the railroad company had
been defrauded, The draft when IL fell due
bad been taken up and paid by Ives d Co. out
Of the money then in their hands. He declared
that the company had not lost a cent, and de-
sounced the brought by Dexter
sempt by the complainant, taking advantage of
mis- position president of the company. TO
break Mr. Ives down. and prejudice him in the
civil suit then pending. Mr.. Dexter had already
testified that, in bringing the com plant, he
DOT acting under the direction of the stock
holders directors
Justice Killbreth said he would have the testi-
mouy written out aud take the motion under
advisement, and the case was then adjourned.
A New Line in Western Indiana
Special the INDIANAPOLIS Jon-aaa.
ROCKVILLE, Dec. 15.-Maior j. J. Safely, of
Rockville. has had articles of association of
new railroad drawn up. and will build road
from Fountain county to Brazil The new line
will follow the old tow-path of the Wabash
canal to Andrew Lnebarger's farms, near
West Union. this county, where it leaves the
tow-path and comes to Rockville. There it
strikes the old grade, already built several miles
southeast of town, and runs to Bridgeland
and to Brazil It through good
farming country and coal fields. The road will
be close the famous Lodi artesan well,
where the Major has expended much money
in improvements of tina. property. 1t is said be
has the assistance of another railroad in this |
project, and many willing to believe this |
road will reach Rockville before the |
Midland road. now building to Ladosa, in |
I'M DoFT ~ Mt and hinh Oad